Stellex Capital Management (“Stellex”), a private equity firm that invests in middle-market companies in North America and Europe, announced that it has completed the sale of Continental Global Material Handling (“CGMH” or the “Company”) to Precision Pulley & Idler (“PPI”).
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Continental Global Material Handling (Graphic: Business Wire)
CGMH, based in Winfield, Alabama, is a leading designer and manufacturer of material handling conveyor systems and has been a leader in bulk material handling since its founding in 1959. As a manufacturer of many key conveyor components and systems, CGMH is a trusted partner in the conveying industry. With a strong engineering team, CGMH ushers development of widely recognized premium products which it believes delivers superior value relative to its competition serving the leading customers in resilient and emerging end markets, including aggregates, copper, steel, coal, potash, salt, agriculture, transportation, and industrial.
CGMH was acquired by Stellex in a carve-out transaction from Komatsu Mining Corp (“Komatsu”) in 2021. Stellex partnered with Rich Meacci (Co-President & CFO) and Mark Rodgers (Co-President & COO) to step into leadership roles and execute on the value creation plan. Under Stellex’s ownership, the Company renewed its commercial growth strategy; rebuilt its sales network; and implemented numerous operational initiatives, including lean operations, automation, and strategic sourcing. As a result, CGMH drove significant new business wins, with U.S. sales more than tripling in less than three years, and the Company realized substantial efficiencies that improved profitability.
“We would like to congratulate the entire CGMH team for their achievements over the past three years under Stellex’s ownership,” said Michael Livanos, Managing Director at Stellex. “The sale to PPI is a testament to their hard work and successful execution of the strategic initiatives we identified at acquisition. It has been a privilege working alongside this talented team, and we wholeheartedly wish them continued success in their next chapter.”
“We are truly grateful for the partnership with Rich, Mark, and the exceptionally talented team at CGMH,” added Catherine DeMarco, Vice President at Stellex. “We recognized early on the opportunity to create value by revitalizing the Company’s sales efforts and executing strategic operational improvement initiatives, and we are proud to have supported them on this remarkable journey.”
Houlihan Lokey served as exclusive financial advisor and Proskauer Rose LLP served as legal counsel to Stellex and CGMH with respect to the transaction. The financial details of the transaction have not been disclosed.
About Stellex Capital Management
With offices in New York, Detroit, Pittsburgh, and London, Stellex Capital is a private equity firm with over $2.8 billion in AUM. Stellex seeks to identify and deploy capital in opportunities that stand to benefit from its operationally focused and hands-on approach to investing. Portfolio companies are supported by Stellex’s industry knowledge, operating capabilities, network of senior executives, strategic insights, and access to capital. Sectors of particular focus include aerospace, defense & government services, transportation & logistics, manufacturing, real economy & business services, food processing and tech-enabled services. Additional information may be found at www.stellexcapital.com.
About CGMH
Continental Global Material Handling (CGMH) is a trusted name in conveyor equipment and has been since 1959. As a manufacturer of many key conveyor components as well as material handling systems, CGMH is a trusted partner in the conveying industry. For more information visit https://cgmh.com/
About PPI
Precision Pulley & Idler (PPI) is an industry leader in conveying components, with over a million square feet of manufacturing space and 25 global facilities. PPI’s promise is simple: provide quality products at a competitive price with unbeatable customer service. It’s been a promise kept for over four decades in a diverse group of industries including aggregate, mining, forestry, grain, unit handling, and food processing. PPI is the industrial division of Precision, Inc.
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